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Eurocon

Eurocon

Engineering consultancy with broad competence

Eurocon Consulting, a consulting service company founded in 1990, provides the forestry, energy, mining, and chemistry markets with engineering services. The offering covers the whole life cycle of customer investment, from preliminary study to implementation, deployment and maintenance. The customers are almost exclusively major industrial companies and municipalities. The company’s main vision is to be the obvious choice for customers and employees who want to build and optimize for a sustainable future.

Eurocon has a solid financial position with stable cash flows. This positions Eurocon for further acquisitions, which in turn will generate most of the firm’s future growth. Together with its consultancy offering, Eurocon also provides customers with its developed software Sitebase. The software scales well with increased volumes and can hence strengthen the company’s operating margins.

The markets that Eurocon is exposed to are cyclical markets such as mining and forestry, and hence, Eurocon is dependent on investments in these markets. As other consulting businesses are experiencing as well, hiring consultants is hard, and especially within engineering. As the company grows, keeping competent and experienced employees is essential.

SEKm 2021 2022e 2023e
Sales 291 339 364
Sales growth (%) 18,2 16,6 7,5
EBITDA 39 50 53
EBITDA margin (%) 13,5 14,8 14,5
EBIT adj 26 38 41
EBIT adj margin (%) 9,1 11,2 11,2
Pretax profit 26 38 40
EPS rep 0,47 0,69 0,73
EPS growth (%) 108,7 46,8 6,2
EPS adj 0,47 0,69 0,73
DPS 0,4 0,5 0,55
EV/EBITDA (x) 7,6 6,8 6,3
EV/EBIT adj (x) 11,3 8,9 8,2
P/E (x) 14,9 11,6 11
P/E adj (x) 14,9 11,6 11
EV/sales (x) 1 1 0,9
FCF yield (%) 8,2 8,6 11,1
Dividend yield (%) 5,7 6,2 6,9
Net IB debt/EBITDA -0,2 -0,2 -0,3
Lease adj. FCF yield (%) 4,5 5,4 7,9
Lease adj. ND/EBITDA -1 -0,8 -0,9
SEKm 2021 2022e 2023e
Sales 291 339 364
COGS -29 -35 -30
Gross profit 262 304 335
Other operating items -222 -254 -282
EBITDA 39 50 53
Depreciation on tangibles 0 -2 -2
Depreciation on intangibles 0 0 0
EBITA 26 38 41
Goodwill impairment charges 0 0 0
Other impairment and amortisation 0 0 0
EBIT 26 38 41
Other financial items 0 0 0
Net financial items 0 0 -1
Associated income 0 0 0
Other EO items 0 0 0
Pretax profit 26 38 40
Tax -5 -8 -8
Net profit 20 30 32
Minority interest 0 0 0
Net profit discontinued 0 0 0
Net profit to shareholders 20 30 32
EPS 0,47 0,69 0,73
EPS Adj 0,47 0,69 0,73
Total extraordinary items after tax 0 0 0
Tax rate (%) -21 -20 -20,6
Gross margin (%) 90 89,8 91,9
EBITDA margin (%) 13,5 14,8 14,5
EBITA margin (%) 9,1 11,2 11,2
EBIT margin (%) 9,1 11,2 11,2
Pretax margin (%) 8,9 11,1 11
Net margin (%) 7 8,9 8,8
Growth rates Y/Y 2021 2022 2023
Sales growth (%) 18,2 16,6 7,5
EBITDA growth (%) 43,4 28,2 5,1
EBIT growth (%) 91,7 44,6 6,9
Net profit growth (%) 108,7 46,8 6,2
EPS growth (%) 108,7 46,8 6,2
Profitability 2021 2022 2023
ROE (%) 20,2 26,5 25,6
ROE Adj (%) 20,2 26,5 25,6
ROCE (%) 20 27,9 27,3
ROCE Adj(%) 20 27,9 27,3
ROIC (%) 19,7 29,1 28,9
ROIC Adj (%) 19,7 29,1 28,9
Adj earnings numbers 2021 2022 2023
EBITDA Adj 39 50 53
EBITDA Adj margin (%) 13,5 14,8 14,5
EBITA Adj 26 38 41
EBITA Adj margin (%) 9,1 11,2 11,2
EBIT Adj 26 38 41
EBIT Adj margin (%) 9,1 11,2 11,2
Pretax profit Adj 26 38 40
Net profit Adj 20 30 32
Net profit to shareholders Adj 20 30 32
Net Adj margin (%) 7 8,9 8,8
Depreciation and amortisation -13 -12 -12
Of which leasing depreciation -13 -10 -10
EO items 0 0 0
Impairment and PPA amortisation 0 0 0
EBITDA lease Adj 28 39 41
EBITDA lease Adj margin (%) 9,5 11,4 11,3
Leasing payments -12 -12 -12
SEKm 2021 2022e 2023e
EBITDA 39 50 53
Net financial items 0 0 -1
Paid tax -5 -8 -8
Non-cash items 0 0 0
Cash flow before change in WC 33 42 44
Change in WC -8 -9 -2
Operating cash flow 25 34 42
CAPEX tangible fixed assets 0 -3 -4
CAPEX intangible fixed assets 0 0 0
Acquisitions and disposals 0 0 0
Free cash flow 25 30 39
Dividend paid 0 -17 -22
Share issues and buybacks 0 0 0
Other non cash items 11 0 0
Decrease in net IB debt 12 6 7
Balance Sheet (SEKm) 2021 2022 2023
Goodwill 62 62 62
Indefinite intangible assets 0 0 0
Definite intangible assets 3 3 3
Tangible fixed assets 3 4 5
Other fixed assets 1 1 1
Fixed assets 88 90 93
Inventories 0 0 0
Receivables 82 95 102
Other current assets 0 0 0
Cash and liquid assets 30 33 40
Total assets 201 218 235
Shareholders equity 107 120 130
Minority 0 0 0
Total equity 107 120 130
Long-term debt 0 0 0
Pension debt 0 0 0
Convertible debt 0 0 0
Deferred tax 0 0 0
Other long-term liabilities 1 1 1
Short-term debt 2 2 2
Accounts payable 71 75 80
Other current liabilities 0 0 0
Total liabilities and equity 201 218 235
Net IB debt -8 -10 -16
Net IB debt excl. pension debt -8 -10 -16
Capital invested 99 110 114
Working capital 12 20 22
EV breakdown 2021 2022 2023
Market cap. diluted (m) 305 350 350
Net IB debt Adj -8 -10 -16
Market value of minority 0 0 0
Reversal of shares and participations 0 0 0
Reversal of conv. debt assumed equity 0 0 0
EV 297 340 334
Capital efficiency (%) 2021 2022 2023
Total assets turnover (%) 151,5 161,9 160,7
Capital invested turnover (%) 216,2 235,9 245,9
Capital employed turnover (%) 192 195,2 194,8
Inventories / sales (%) 0 0 0
Customer advances / sales (%) 0 0 0
Payables / sales (%) 20,7 19,6 20,4
Working capital / sales (%) 5,1 4,7 5,8
Financial risk and debt service 2021 2022 2023
Net debt / equity (%) -7,5 -8,4 -12,2
Net debt / market cap (%) -3,3 -2,9 -4,5
Equity ratio (%) 53,5 54,9 55,2
Net IB debt adj. / equity (%) -7,5 -8,4 -12,2
Current ratio (%) 135,8 146,6 152
EBITDA / net interest (%) 9507,3 10209,3 10558,7
Net IB debt / EBITDA (%) -20,4 -20 -30,1
Interest cover (%) 6392 7737,3 8138,7
Lease liability amortisation -11 -11 -11
Other intangible assets 2 2 2
Right-of-use asset 20 21 22
Total other fixed assets 2 2 2
Leasing liability 20 21 23
Total other long-term liabilities 1 1 1
Net IB debt excl. leasing -28 -31 -38
Net IB debt / EBITDA lease Adj (%) -102,3 -81 -93,1
SEKm 2021 2022e 2023e
Shares outstanding adj. 44 44 44
Fully diluted shares Adj 44 44 44
EPS 0,47 0,69 0,73
Dividend per share Adj 0,4 0,5 0,6
EPS Adj 0,47 0,69 0,73
BVPS 2,46 2,75 2,98
BVPS Adj 1,01 1,3 1,53
Net IB debt / share -0,2 -0,2 -0,4
Share price 5,56 8,02 8,02
Market cap. (m) 243 350 350
Valuation 2021 2022 2023
P/E 14,9 11,6 11
EV/sales 1,02 1 0,92
EV/EBITDA 7,6 6,8 6,3
EV/EBITA 11,3 8,9 8,2
EV/EBIT 11,3 8,9 8,2
Dividend yield (%) 5,7 6,2 6,9
FCF yield (%) 8,2 8,6 11,1
P/BVPS 2,85 2,92 2,69
P/BVPS Adj 6,96 6,19 5,25
P/E Adj 14,9 11,6 11
EV/EBITDA Adj 7,6 6,8 6,3
EV/EBITA Adj 11,3 8,9 8,2
EV/EBIT Adj 11,3 8,9 8,2
EV/cap. employed 2,3 2,4 2,2
Investment ratios 2021 2022 2023
Capex / sales 0 1 1
Capex / depreciation 0 170,8 173,5
Capex tangibles / tangible fixed assets 1,9 92,5 70
Capex intangibles / definite intangibles 0 0 0
Depreciation on intangibles / definite intangibles 0 0 0
Depreciation on tangibles / tangibles 0 54,2 40,3
Lease adj. FCF yield (%) 4,5 5,4 7,9

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Media

Eurocon - Company presentation with CEO Peter Johansson
Eurocon - Company presentation with CEO Peter Johansson

Main shareholders - Eurocon

Main shareholders Share capital % Voting shares % Verified
Nordea Fonder 10.8 % 10.8 % 30 Jun 2022
Anne-Louise Löfdahl 10.2 % 10.2 % 28 Jun 2022
Avanza Pension 8.1 % 8.1 % 28 Jun 2022
Christer Svanholm 4.2 % 4.2 % 28 Jun 2022
Ulf Rask 4.1 % 4.1 % 2 Jun 2022
Fredrik Forsgren 4.1 % 4.1 % 28 Jun 2022
Johan Westman 3.6 % 3.6 % 18 Jul 2022
Peter Johansson 2.5 % 2.5 % 28 Jun 2022
Mikael Lindqvist 2.3 % 2.3 % 28 Jun 2022
Nils Lindström 2.3 % 2.3 % 28 Jun 2022
Source: Holdings by Modular Finance AB

Insider list - Eurocon

Name Quantity Code Date
Johan Westman + 7 287 BUY 22 Jun 2021
Lars Anders Nilsson + 100 000 BUY 26 Mar 2021
Erica Jonsson + 4 000 BUY 4 Dec 2020
Erica Jonsson + 2 500 BUY 11 Nov 2020
Implementeringssystem i Sundsvall AB + 50 000 BUY 11 Nov 2020
Erica Jonsson + 4 835 BUY 11 Nov 2020
Erica Jonsson + 65 BUY 10 Nov 2020
Erica Jonsson + 100 BUY 3 Nov 2020
Erica Jonsson + 1 087 BUY 15 Oct 2020
Erica Jonsson + 2 720 BUY 14 Oct 2020

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